The workload of a business filing 15 information returns compared to an accounting firm filing 1500 is vastly different. Tax software pricing does not always reflect that distinction.
A third issue is the fact that information-returns are highly seasonal. Small companies may use their filing software heavily for a couple of months, and only use it for a few months, and then stop using it for the remainder of the year.
This raises a crucial question about purchasing. Should businesses pay on a continuous basis to access its software, or should the cost of its software be based on the amount of data it actually stores?
TaxFormHero uses the second method, based on a per-form price instead of signing up seats, subscriptions, or subscriptions.
Begin with the actual filing volume
Comparing platforms solely by their prices advertised can be misleading. Consider the amount of returns you expect to file and what services you’ll need.
TaxFormHero charges $1.99 for each form. Gradually, the cost per form decreases as you increase the volume of your forms. Custom rates are possible for companies that have a large volume of forms to file.
For those who file only on occasion an absence of a monthly subscription means there’s nothing to cancel after filing season. If the CPA handles more than one client, he or she does not need to purchase seats separately because additional staff members are needed to assist in the process.
Optional Services should actually be Optional
Each filer may require different services.
An organization may be satisfied with the process currently in place of downloading copies of the recipient’s copy, and then distributing copies to them. The business might want to have the service provider take care of delivery.
TaxFormHero’s 1099 electronic filing platform, recipient copies can be downloaded for free. If you pay for services, you can also include the delivery of electronic recipients, as well as print-and-mail. The TIN verification service is a different service.
This modular approach allows businesses to separate the expense of filing and the expense of additional services, instead of automatically paying for features they do not require.
Organizational problems are caused by scale
When filing additional documents, cost isn’t the only consideration to take into account.
Accounting software can assist an accountant working with multiple companies to organize their EINs without having a cluttered list of accounts. TaxFormHero lets multiple payer entities under a single login, and also bulk imports using Excel or CSV.
A broader 1099 filing and W-9 collection solution should reduce repetitive administrative work while maintaining clear separation between payer records. Importing structured data is an efficient method to manage the multiple returns of professionals.
Cost discussion should include security and compliance
The cheapest filing option will not necessarily be the least expensive in the event that it requires additional administrative burdens or doesn’t have the capabilities the organization requires.
IRS-approved, TaxFormHero offers electronic filing for W-2s, 1099s and other returns for informational purposes. The company claims that its platform offers two-factor authentication, and the 256-bit encryption for data during transit and in rest. The company says it plans to finish an independent SOC 2-Type I audit of the Security trust service criteria by the end of October 2025.
Companies should consider these security and operational concerns together with the return price.
Purchase the Filing System You Actually Have
Accounting firms, small businesses and multi-entity firms should not be forced to make use of the same program.
The method that is the most beneficial takes into account the amount of files and the number of entities that pay working on the entry of data, requirements for delivery to recipients, verification requirements, and security requirements.
Software shouldn’t be a monthly cost for seasonal compliance work. The cost of a pay-per form structure can rise and fall depending on the amount of information filed, making budgeting easier.
